TOKYO, May 20 (Pulse News Wire) – Futaba Corporation (6986.T) announced today that its board of directors, held, resolved to dissolve its subsidiary, Fortuba International Trade (Shanghai) Co., Ltd. The decision was made due to declining sales volumes in electronic products, particularly fluorescent display tubes and outcell touch sensors.
Fortuba International Trade (Shanghai) Co., Ltd., located in China's Free Trade Zone, specializes in the procurement and sale of electronic equipment products. Founded on June 22, 2001, the company had a capital of ¥1,655 thousand Chinese yuan and employed six staff members. Its major shareholder, Fortuba (Hong Kong) Limited, holds a majority stake of 100%. As part of the restructuring, operations will cease on December 31, 2026.
In recent years, the subsidiary’s performance has shown significant decline. In fiscal year 2024, it reported operating losses of ¥5,409 thousand Chinese yuan, which increased to ¥3,645 thousand Chinese yuan in fiscal year 2026. Revenue also dropped sharply from ¥8,214 thousand Chinese yuan in fiscal year 2025 to just ¥1,594 thousand Chinese yuan in fiscal year 2026. The dissolution process is expected to conclude by the end of June 2027, contingent upon local legal requirements being met.
Futaba Corporation stated that it is currently assessing the impact on its overall performance and will promptly disclose any further developments.
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